• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Case Study Timmings plc, a small engineering firm.

Extracts from this document...


Pg. 529 Case Study: Timmings plc (a) Using the case as an example, explain what is meant by 'increasing the scale of operations'. By 'increasing the scale of operations' it is meant that it increases the variety of jobs (operations) it does. For example with Timmings plc, it started as a small engineering company, it repaired agricultural implements for farmers in Hereford and Worcestershire. Now it has a full line of skid steer and mini skid loaders as well as attachments, mobile screening plants and six models of mini excavators and it recently added a complete line of potato harvesting, irrigation and handling equipment, and now it manufactures and distributes worldwide. This is an example of increasing the scale of operations, as it started doing only one thing and now it does many more, so in needs more resources, but it produces much more output. ...read more.


Machinery is often more precise and consistent, but if it breaks down there would be huge delays and costs. I believe that Timmings plc changed to capital intensive, because in 2001 it began to experience problems in recruiting high quality engineers, and at the same time, the business was sold to a large US engineering company, so maybe (and most probably) the US company believed that it would be better to change to capital intensive. (4) (d) Describe two technical economies of scale that Timmings plc is likely to exploit. Technical economies arise because large plants are often more efficient. The capital costs and the running costs of the plants do not rise in proportion to their size. ...read more.


In 2001 Timmings plc changed to capital intensive production and spent $180 million on CNC machines and robots (as it already had difficulties recruiting high quality engineers). Two categories of robots were purchased by Timmings. Processing operation robots and assembly line robots. Some of the advantages of capital intensive production are that they are generally more cost effective if large quantities are produced, machinery is often more precise and consistent, its easier to manage than people and it can operate 24/7. This is good, as people are difficult to manage and cannot work without breaks and holidays. They need to be motivated to improve performance, and may go sick or leave suddenly. In my opinion the benefits of switching to capital intensive strategies outweigh the drawbacks; the only downside I can see is that 30 staff were laid off. (10) ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our International Baccalaureate Business Studies section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related International Baccalaureate Business Studies essays

  1. Case Study - Recovery Kitchens Ltd

    This would help Recovery Kitchens Ltd determine a general and quick examination of their current position so therefore future directions can be identified. Strengths: - Recycled wood is the current strength of Recovery Kitchens Ltd because there is no serious competition in the market and they are targeting a niche market.

  2. The Main advantages and disadvantages of mixed economy system

    In the year 2003 total expenditure for Social Security in percents from GDP was 25.1%. Real GDP growth rate in Norway As we see it on figure 3.7, Norway's GDP growth rate boomed in 2005 and continued its growth till 2007.

  1. IB BM Case Study

    One likely reason is that the competitors entry into the market has proved that profits in their current market is very little, b) How can Fun Air react to the threats posed by their competitors? Fun Air can provide better and/or new services directed to school age children to attract consumers.

  2. starting a small business

    If so, what products? Please tick 1 or more Shampoos Conditioners Straighters Other 13. What do you think of the salon? Good Could be improved Bad 14. What shampoo do you use? 15. Do you use conditioner? Yes No 16.

  1. Business Leaders on Managing Organizational Change: the case of British Airways

    However, the resolution of the problem with the trade union was replaced by a three-day strike by the BASSA. This affected the operations and thus the profit of the company. The events that transpired between and the employees of British Airways resulted to the decrease of the employees' morale.

  2. In this paper, we will study the case of Intel, a semiconductor chip maker, ...

    SECTION GOALS Environment At the beginning of 2008, they set new five-year goals related to global-warning emissions, water use, waste reduction, recycling, and product energy efficiency: * Reduce water use per chip below 2007 levels by 2012. * Reduce absolute global-warning gas footprint by 20% by 2012 from 2007 levels.

  1. Introduction to e-commerce. Benefits, risks and legislation.

    Also, intelligent agents can answer standard e-mail questions in seconds and human experts' services can be expedited using help-desk software. 3. Advertisement With direct marketing and customization appears as one-to-one or direct advertisement, which is much more effective than mass advertisement.

  2. Organisational Behaviour (in short called as OB) is concerned with the study of the ...

    The explanations might be the diversity of country?s climate and different raw materials. ? Costs could be higher at some Hierarchical level. For Instance, some management decisions may be taken by the head office for all departments, consequently, each board would have less Managers leading to cutting the organisation?s costs.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work